Risks facing Argentina in the face of dollarization of the economy

Finance

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EFE




August 27, 2023 8:01 pm m.

Argentina’s Minister of Economy and Presidential Candidate Sergio Massa, He warned of the consequences of dollarization proposed by his opponentThat’s Javier Mili And promised to move towards a transactional simplification if it is achieved Pink House Next December 10.

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I feel the country is at risk and we have to choose whether we live in a society that co-exists, thrives and is inclusive or we go to the law of the jungle.”, confirmed Massa before the audience of traders and the latest arrival Paraguay. Milei, the candidate with the most votes in the Aug. 13 primaries, questioned the dollarization of the economy and proposed closing the central bank, first bailing out its liabilities through bonds.

(A country where Colombians can visit without a visa and earn in dollars)

The minister said that it is not possible to replace the dollar without sufficient export currencies, let alone.breakingRelations with China and Brazil, Argentina’s main trading partners. Dollarization and a break with strategic trading partners are “” he warned businessmen.Destruction“Capital of Firms including Human Capital”He is going to leave Argentina“If their wages are reduced.

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Economy Minister Massa from July 2022, “Not easy to manageIn the “crisis of size” that Argentina faces, a “A structural crisis of excessive debt“worsened by a crisis”Conjunctural” Argentina’s main source of foreign exchange earnings in recent months has been taken from a drought that has hit agriculture. He promised to move towards transaction simplification and maintain a competitive official exchange rate.

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